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PREVIEW: The Japanese MOF will today...>

JGBS AUCTION
JGBS AUCTION: PREVIEW: The Japanese MOF will today sell Y2.0tn of 2-Year JGB's
opening #JB401. The MOF last sold 2-Year debt on April 23, the auction drew
cover of 5.041x at an average yield of -0.152%, average price of 100.503, high
yield of -0.150%, low price of 100.500, with 52.7405% of bids allotted at the
high yield.
- 2-Year JGB yields sit around 2.0bp off their YtD low at writing, last -0.165%.
- The inverted 2-5 Year sector of the curve leaves the zone looking attractive
vs. 5s in outright terms. 2s also look slightly more attractive than 5s in ASW
terms, although 2s are far less favourable In carry and roll terms.
- Results due at 0435BST/1235JST
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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